Modern Monetary Theory (MMT) is a hip economic/financial paradigm apparently sweeping a world unsatisfied with mainstream economics. This is the episode folks have been asking us for. So it is very much worth paying attention when an icon of the left and a supporter of tax-and-spend fiscal policies, with credentials sufficient to make him a world-renowned pundit, blogs that proponents of Modern Monetary Theory (MMT), who are “on my side in current … In recent years, a radical and unorthodox school of thought called “Modern Monetary Theory” (MMT) has become popular with some progressive economists, as well as with policymakers and activists on the political left. Respected and influential academics such as Paul Krugman, Kenneth Rogoff, and Larry Summers, among others, have stated that MMT makes little sense. Mr. Krugman in his Friday NYT blog engaged Modern Monetary Theory on these facts and received considerable flack from MMT economists and supporters for misrepresenting MMT’s assertions. Although Paul Krugman has clashed with Stephanie Kelton over her absurd book claiming that deficits don't matter (See my rebuttal: Problems With Modern Monetary Theory: A Comment on Stephanie Kelton’s "The Deficit Myth"), Krugman sounds as though he is now part of the MMT camp. Frankly, I was pleased to see Mr. Krugman address our work and was really not surprised by some of his objections. Its adherents think it’s just common sense, but it’s actually destructive nonsense. Modern Monetary Theory – which is neither modern nor a theory – is a post hoc rationalization of political expediency and power-expanding action. Some eminent economists think the former. Pushed by bipartisan support from prominent politicians like Alexandria Ocasio-Cortez and – some would argue Donald Trump himself – Modern Monetary Theory (MMT), which has hitherto been regarded as a borderline lunatic idea is making a serious comeback into the political and economic conversation. He last wrote about MMT in a two-part series on February 12-13, 2019.Although he’s had almost a … Over the past year, I have been hearing a growing number of people refer to MMT: either fans who think it blows up my Austrian views, or foes who think it deserves a full-scale critique. Krugman Posts Discussed “What’s Wrong With Functional Finance? After all, he is making the same arguments we’ve been addressing for the last … Free exchange Is modern monetary theory nutty or essential? Why, governments can never “run out of money,” because they have a printing press! She said Modern Monetary Theory should be "a larger part of the conversation," in an interview with INSIDER in 2019.) It makes us feel better about all the bad stuff we’ve done with money and debt for the political efficacy of Team Elite. No one can sensibly accuse Nobel Prize-winning economist Paul Krugman of being averse to progressive economic ideas. One of MMT’s most prominent advocates is Stephanie Kelton, a professor at Stony Brook University who advised Senator Bernie Sanders during his 2016 presidential … Paul Krugman first wrote about modern monetary theory on March 25, 2011. Modern Monetary Theory (MMT) is picking up steam (thanks to Alexandria Ocasio-Cortez and Bernie Sanders), to the point that even Krugman is alarmed. Modern Monetary Theory (MMT) is gaining traction. ... Paul Krugman, a Nobel prizewinner … OK, it’s a little more sophisticated than that, but not nearly as much as they think it is. And all the bad stuff we’re going to do. 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